PharmEasy to Pledge Thyrocare Shares for INR 1,700 Cr Debt Raise

According to an exchange filing, the funds raised will be used to repay ₹1,545.4 crore of existing debt secured through earlier NCDs.

API Holdings, the parent company of digital health platform PharmEasy, has announced plans to raise ₹1,700 crore through redeemable non-convertible debentures (NCDs), using shares of its listed diagnostics arm, Thyrocare, as collateral.

According to an exchange filing, the funds raised will be used to repay ₹1,545.4 crore of existing debt secured through earlier NCDs.

API Holdings had previously issued NCDs with a redemption value of ₹1,820 crore, of which the outstanding amount remains.

“API has now proposed to avail of debt by way of issuance of secured, unlisted, redeemable, nonconvertible debentures aggregating to a nominal value of up to INR 1700,00,00,000/- (Rupees One Thousand and Seven Hundred Crore only) (“Proposed Debentures”). The proceeds of the proposed Debentures shall be utilised to redeem the Existing Debentures in full,” the filing read.

The previous NCDs were backed by pledging the full 71.06% stake that Docon Technologies Pvt Ltd holds in Thyrocare. Docon, a promoter of Thyrocare, is controlled by API Holdings.

With the earlier pledged shares set to be released, Docon will now pledge up to 61% of its Thyrocare shares to support API Holdings’ new fundraising through the issuance of NCDs.

What led to the Move 

This development comes as PharmEasy faces challenges in achieving profitability while navigating leadership changes. In August, CEO Siddharth Shah resigned from his executive role, transitioning to vice-chairman of API Holdings.

He was replaced by Rahul Guha, Managing Director and CEO of Thyrocare, which API had acquired for ₹4,546 crore in June 2021. Shah, who had led API since 2020, will remain on the board to support strategy and governance.

Shah’s exit marked the departure of PharmEasy’s last executive founder from day-to-day operations. Earlier this year, co-founders Dharmil Sheth, Dhaval Shah and Hardik Dedhia stepped back to launch All Home, an architecture and interior-design venture backed by Bessemer Venture Partners. They continue to hold board-level and observer roles within the API group.

Last year, PharmEasy raised $216 million in a funding round led by Manipal Education and Medical Group (MEMG), at a sharply reduced valuation of $710 million compared to its $5.6 billion peak in 2021.

For FY24, PharmEasy reported a consolidated loss of ₹2,531 crore, nearly halving its loss from ₹5,202 crore in the previous fiscal, as total expenditure dropped 20 percent to ₹7,255 crore. The platform is also reviving its deferred IPO plans, originally shelved in 2023, with the leadership reshuffle viewed as part of broader succession planning ahead of a potential listing.

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